Tuesday, August 7, 2012

Trust is a Precursor to Taxes

Karlo Silbiger

It has become a mantra of the conservative right throughout the country: we need to lower taxes because the government causes more problems than it solves.  They say that it is inefficient, that it is a job killer, and that it denies the very liberties inherent in the founding concepts of this country.  They promise that tax cuts will trickle down through the ranks so that every single person will benefit from their enactment.  And they fight vigorously against any attempt to create any government program to address economic inequities calling them socialist and taking their tea party to the street.  For most of the past 30 years, it has worked and the words “tax increase” have killed many political careers.

Times have been tough throughout the country leading to a decrease in tax revenue and a need for more social programs to address poverty, all of which cost money.  When government costs increase and the only form of income simultaneously decreases, there are only 2 ways to solve the problem responsibly: increase taxes for one or more groups or decrease public spending.  Given that neither of those have taken place due to the polarized political ideologies in government, we have seen irresponsible deficit and debt increases that will hurt our economy for generations to come.

It is within that political context that I have been thinking lately about an interesting local phenomenon in Culver City.  In 2009, in the depths of the great recession, the school board decided to place an initiative on the ballot (later known as measure EE) which would charge each property owner an added $96 per year to pay for our schools, then (and still) in need of help just to stay afloat.  Every one of the 5 board members at the time supported it as did the entire city council, leading to a near 75% vote of support from the community.  Earlier this year the council unanimously put a measure on the ballot increasing the Transient Occupancy Tax (the one charged by hotels) by 2% and it was so popular that no one publicly campaigned against it on the way to an 83% vote of support.  Now word comes out that the city council, again unanimously, has put a question to the voters inNovember asking us to increase our sales tax by ½%.  Once again, the polling done by the city has shown super majority support for increasing taxes.

How is it possible that in a country that supposedly hates taxes and would rather see us borrow $1 trillion per year than make Mitt Romney pay more than 12% in income taxes, Culver City voters have repeatedly raised their own taxes?  How do our elected officials feel comfortable supporting this taboo topic so hated by our neighbors outside of Culver City?

What I’ve realized is that while the GOP and conservatives have insisted that Americans are anti-tax using tax revolt movements dating from prop 13 to the tea party, that is not an accurate depiction of our populace’s beliefs.  We don’t hate taxes, we hate wasted money.  We understand that running a government costs money and we are willing to pay for good services, but we have been demoralized by generations of wasted government money.   When we vote against raising taxes, most of us are actually saying that we don’t trust our elected officials to spend that money on the things that need financing.  But when the money is spent well (like on President Obama’s initiative to save the American Auto Industry or on former Governor Pete Wilson’s plan to cap elementary school class sizes at 20 students), the vast majority of Americans are only too happy to contribute.

Here in Culver City, we trust our elected officials to spend our money wisely because we have decades of proof that for the most part, that is what’s done.  When our school board or city council comes asking for some extra tax contributions, people give knowing that it will be used to fund needed programs and services.  Sacramento and Washington DC could learn a lesson from our community on how to build the trust necessary to put aside the extreme rhetoric and begin governing.  Because of that history, I am sure that voters will once again support the council in their attempted sales tax hike in November, but I’m not nearly as sure that Governor Brown has earned that same support for his proposition on the same ballot.

Karlo Silbiger is the Co-Editor of the Culver City Progress Blog, the President of the Culver City School Board, and the Former President of the Culver City Democratic Club.

1 comment:

  1. I wholeheartedly agree with you, Karlo! Now that Paul Ryan is Mitt Rommney's running mate, there is no end to the stream of extreme anti-tax, anti-government rhetoric at the national level. Thanks for pointing out that local communities tend to see it differently. For that reason, Paul Ryan may lose both his Congressional seat and his run for VP!- Carlene Brown, MA. Ed.

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